Executive Summary: Business Plan For Taco Bell
Business Plan For
Taco Bell
Table of Contents
Executive Summary .................................................................................................................................... 2
Company Description ................................................................................................................................. 2
Cultural Analysis Of Switzerland ................................................................................................................. 3
Brief History Of Switzerland .................................................................................................................... 3
Geographical Settings ............................................................................................................................... …show more content…
3
Social Institutions.................................................................................................................................... 4
Religion And Aesthetics ........................................................................................................................... 6
Living Conditions ................................................................................................................................... 7
Language ............................................................................................................................................... 10
Economic Analysis ................................................................................................................................... 10
Population ............................................................................................................................................. 10
Economic Statistics And Activity ........................................................................................................... 11
Developments In Science And Technology ............................................................................................ 17
Channels Of Distribution ........................................................................................................................ 18
Media .................................................................................................................................................... 19
Market Audit And Competitive Market Analysis ....................................................................................... 20
The Product ........................................................................................................................................... 20
The Market ............................................................................................................................................ 20
Preliminary Marketing Plan ........................................................................................................................ 21
Marketing Plan ...................................................................................................................................... 21
Pro Forma Financial Statements And Budgets ....................................................................................... 28
Resource Requirements .......................................................................................................................... 29
Conclusion ................................................................................................................................................ 30
References ................................................................................................................................................. 31 2
Executive Summary
This five-year project has been created with the aim to make an investment in Switzerland by bringing a Taco Bell franchise to that country. This franchisee will operate as a single-brand, a traditional Taco Bell Unit offering inexpensively priced, which offers a high quality Mexican-style food for take-out and on-premises eating. Although this kind of food is a traditional Mexican food, it is very popular and preferred by Americans. This kind of food with its delicious taste can also be liked by Europeans, in particular by Swiss people who are going to have the opportunity to have this fast food restaurant in their own country. However, there are some challenges that should be considered for brining Taco Bell in Switzerland. The legal requirements from Switzerland, the standards of the quality of food, the skilled staff, and some other requirements must be met for having a Taco Bell open in this country.
Company Description
Taco Bell Corporation is a California-based fast service restaurant chain that specializes in Mexican-style fast food. Taco Bell, with 2004 combined company and franchisee sales reaching $5.7 billion dollars, holds the largest share of the Mexican-style restaurant market in the United States. More than 35 million consumers visit a Taco Bell each week and over 80 percent of its 6,500 locations are franchised. The company, with restaurants in Canada, Guam, Aruba, Dominican Republic, Chile, Costa Rica, Guatemala, Puerto Rico, Ecuador, Hawaii, Asia, and Europe, operates as a subsidiary of YUM! Brands Inc., the largest restaurant company in the world.1
1 Tacobell.com.ph (2008) Taco Bell Philippines. [online] Available at: http://www.tacobell.com.ph/company.htm [Accessed: 8 Feb 2013]. 3
Cultural Analysis Of Switzerland
Brief History Of Switzerland
Switzerland industrialized rapidly during the 19th century, becoming the second most industrialized country in Europe after Great Britain in 1850. During World War I, tensions developed between French, German, and Italian speaking groups in Switzerland. During World War II, there was a high pressure from the fascist powers, which after the fall of France, surrounded the whole country.
The Cold War improved the neutral position of Switzerland. It integrated itself into the American-led Western postwar order. Switzerland did not join the European Union and it still remains out of the European Union.
Geographical Settings
Switzerland is a small country which is located in the heart of western Europe.
It is the land of the Alps with some of the highest mountains in Europe and it has a plateau and many lakes. 60% of Switzerland are in the alpine region. 30% are hills and relatively flat valleys. 10% form a chain of old mountains called Jura. Switzerland does not have access to the sea, but it has many water resources. It is rich of large lakes such as Lake Geneva, Lake Constance, Lake Lucerne, Lake Zurich, Lake Lugano, etc. Some of the largest rivers of Switzerland are Rhone, Rhine, Limmat and Aar. Switzerland enjoys an almost Mediterian …show more content…
climate.2
2 History of Switzerland
Jud. (2000) History of Switzerland. [online] Available at: http://history-switzerland.geschichte-schweiz.ch/swiss-history-summary.html [Accessed: 2 Feb 2013]. 4
Social Institutions
Family
People in Switzerland marry relatively late. They focus more on training and their careers. A Swiss family usually consists of 3-4 family members. Most of the couples have 1 to 2 children.
Education
Switzerland has a decentralized education system. Decisions about running primary and secondary schools are taken at the cantonal level. Cantons also provide the bulk of financing. A head of education is elected for each canton. The heads of cantons make up the Swiss Conference of Cantonal Ministers of Education. About 25% of Swiss adult population hold a diploma of higher learning. According to the CIA World Factbook data for 2003, 99% of the Swiss population aged 15 and over could read and write, with the rate being identical for both sexes.3
3 Aecsworld.com (2000) AECS WORLD | Abroad Education Consultancy Services World Study Abroad Services Study Abroad Consultants For Germany, USA, Finland, Norway, Denmark, Sweden, Netherlands, France, Australia, New Zealand, Canada, Singapore, Switzerland, UK, Ireland, Cyprus etc. [online] Available at: http://www.aecsworld.com/view.php?id=49 [Accessed: 7 Jan 2013].
Political System
The governance system of Switzerland is stable. It is consensus-based and it is designed to direct democracy. Switzerland is a Federal State with 26 cantons. As a decentralized confederation of states, political and administrative responsibilities are divided among the federal, cantonal and municipal levels of Swiss government. . Each canton has its own constitution, code of civil procedure and parliament chamber. The Constitution provides for the separation of the three branches of government: the Federal Assembly, the Federal Council and the Federal Tribunal. Being located at the heart of the European 5
Economic Area (EEA) there is a well-established Swiss-EU relationship mostly focused on trade, labor and transport issues.4
4 Fleiner, T. (2012) Swiss Confederation. [report] IACFS, p.1.
5 Focus, E. (2010) Switzerland - Legal System | ExpatFocus.com. [online] Available at: http://www.expatfocus.com/expatriate-switzerland-legal-system [Accessed: 3 Feb 2013].
6 Focus, E. (2010) Switzerland - Culture, Society and Religion | ExpatFocus.com. [online] Available at: http://www.expatfocus.com/expatriate-switzerland-culture-society-religion [Accessed: 15 Jan 2013].
Legal System
As a brief overview, legislation in Switzerland is approved by Parliament and adjudicated by the Swiss Federal Supreme Court or, in insurance-related cases only, the Federal Insurance Court.
The Federal Supreme Court has a comparable role to the U.S. Supreme Court, however the court in Lucerne is the only federal court. In adjudicating cases, the Federal Supreme Court cannot normally overrule federal statutes unless these are deemed to be in direct violation of human rights, but can call legislation set by cantons into question. However, there are periodic reviews of legislation, with many new laws having come into force on 1 January 2011 concerning a variety of issues ranging from privacy to war crimes, and from minimum wages for cleaners to the prevention of marriages of illegal immigrants in
Switzerland.5
Social Organization
Switzerland is a place of tradition and respect for values of family, religion and homeland. This is more evident in rural areas. Social rules govern behavior of people, promoting a society that is respectful for others. However, there is low tolerance for behavior that is contrary to the good of the community.
Switzerland is known as an efficient and well-ordered society. Glacial lakes and snowy landscapes help to promote the image of a clean and proud country which ensures high standards. Switzerland has high life expectancy . Zurich and Geneva are ranked respectively numbers 2 and 3 in the top cities worldwide for quality of living.6 6
Business Customs And Practices
Appointments in Switzerland should be arranged in advance, and the arrival should be prepared with detailed information relating the meeting. It is very important to build positive business relationships. Arriving at appointment five or ten minutes late is considered disrespectful to Swiss people. When you cannot avoid lateness, contact the meeting coordinator as early as possible. Efficiency is highly valued among Swiss. Swiss businesses operate with a clear leadership structure. The leaders tend to be modest and discreet in their exercise of authority. Most of the Swiss are generally courteous but reserved. Loudness, excessive enthusiasm, and over familiarity are all considered improper at the start of a business relationship. Giving gifts is not a part of the Swiss business culture, however, if invited to diner in a colleague’s home, it is appropriate to bring flowers or high quality Swiss chocolate. When entering or leaving a meeting, it is traditional to shake hands and make eye contact with each person in attendance, beginning with the most senior in age or rank. It is also appropriate to distribute business cards during introductions. Professional relationships are quite formal, even amongst colleagues who have worked closely together for many years. Refer to Swiss colleagues using their formal title if appropriate, or Mr., Mrs., etc. and surname. Nonverbal communication and proper posture is important in professional situations. It is appropriate to cross legs knee-over-knee, however, crossing legs ankle-over-knee or extending legs out while seated is considered rude.7
7 Communicaid (2009) Doing Business in Switzerland. [report] p.1.
Religion And Aesthetics
Religion
The major religions in Switzerland are Catholicism and Protestantism. 46% of the Swiss people are Roman Catholic, while Protestant followers are a close second at 40%. Muslims, Jews and Christians constitute 6%, while people with no professed religious following figure at 10%. There is total freedom of 7
worship in this small country. The proportion of people belonging to other churches has risen since 1980. The Muslim community, representing over 2 percent of the population in 1990, is the largest religious minority in this country. The Jewish community has always been very small and often discriminated; in 1866, Swiss Jews received the constitutional rights held by their Christian fellow citizens. Even though the Swiss Constitution calls for separation of church from the state, churches are still dependent on the state. In many cantons, pastors and priests receive salaries as civil servants, and the state collects ecclesiastical church taxes. 8
8 UNHCR.org (2011) UNHCR | Refworld | World Directory of Minorities and Indigenous Peoples - Switzerland : Overview. [online] Available at: http://www.unhcr.org/refworld/country,,MRGI,,CHE,4562d8b62,4954ce045,0.html [Accessed: 23 Jan 2013].
Aesthetics
Switzerland has a very intense and diverse cultural life. The art and the esthetics in Switzerland also are part of the Swiss. Modernity and rationalization inspire the Swiss artists to create art. People are open to different cultures, arts, and fashion. However, they are mostly focused on the European culture, including arts and aesthetics.
Living Conditions
Diet And Nutrition
Switzerland does not have a great tradition of foods. They adopt the best recipes from German and French cuisine. Also similar to Germany, the Swiss tend to have a diet that is spicier and even sweeter than the diet of the British. They eat a lot of breads, cakes and other sweets, potatoes, and meats. Sausage is also popular in Switzerland. The people of Switzerland are known for being especially fond of cheese and chocolate. Fermented foods, such as sauerkraut and sour cream may help the body handle this higher- 8
fat, low-fiber diet. Fresh fruits are less available and the colder-climate vegetables, such as cabbage, cauliflower, and potatoes are used the most. Beer consumption is also high in Switzerland.9
9 Ianr.unl.edu (2011) People and Their Diet. [online] Available at: http://www.ianr.unl.edu/kendrick/411/people-s00.html [Accessed: 4 Feb 2013].
10 All-history.org (2009) History of the World. [online] Available at: http://all-history.org/01un166.html [Accessed: 9 Jan 2013].
11 Olympic.org (2012) Switzerland | Swiss Olympic Association | National Olympic Committee. [online] Available at: http://www.olympic.org/switzerland [Accessed: 3 Jan 2013].
Housing
Since Switzerland is rich of different cultures and has a variety of geographic settlement patterns, there are different types of traditional housing in different regions of this country. There are smooth stone houses in Engadin, small stone buildings in Ticino, combinations of houses and barns in Mittleland, shingled facades in Appenzen, and the wooden villages of the valleys of Valais canton.
There is a relatively modern housing stock in Switzerland, two-thirds of which have been built since 1947.Since there is a high population density, about one-fourth of homes have more than five rooms.10
Clothing
All the various cultures have an influence on Swiss fashion, as does the nation 's climate. Switzerland 's climate is temperate, although temperatures vary according to the altitude. Temperatures in lower elevations range from cool to warm, with humid summers having occasional showers.
Sports And Recreation
Sports are an important part of Swiss life. The Swiss Olympic Association, the national clearinghouse for sports activities. There are 3.5 million members and more than 25,000 organizations that have been part of it since the beginning of the 21st century. Swiss people like Alpine skiing, Nordic Skiing, touring museums, drinking, fine dining, hiking, cycling, and fishing.11 9
Social Security
The social security system in Switzerland is based on state and occupational benefits. Contributions are made by both employer and employee. However, the contributions to the occupational pension fund only start when the employees turn 25 and they earn more that SFR 20,880 in wages per year from one employer. If the employer is changed, then the employee must arrange for his/her accumulated capital to be transferred to the new employer’s pension fund.
Residents of USA also benefit from social security agreements with Switzerland. They are entitled to a Swiss pension based on contribution they made when working in Switzerland, even if they are no longer in Switzerland when they retire.
Contribution reimbursements to the state social security system, are only possible for people from countries with no social security agreement. Expats may choose to keep or transfer their funds or request a pay-out, so called cash termination benefit. 12
12 Internations.org (2002) Social Security in Geneva | InterNations.org. [online] Available at: http://www.internations.org/geneva-expats/guide/working-in-geneva-15511/social-security-in-geneva-2 [Accessed: 2 Feb 2013].
Healthcare
There are high standards of the general healthcare in Switzerland. This is reflected in an above average life expectancy of Swiss population. Private and public hospitals meet and even exceed international healthcare standards. But, it is very expensive as well. It is on the second place in terms of cost (after U.S.) Private hospitals usually tend to specialize in certain treatments.
Everyone living in Switzerland is entitled to healthcare. All Swiss residents are required to register for basic health insurance. A large portion of health insurance cost is covered by the population and the insurance companies, rather than the state itself. 10
Language
Every country that surrounds Switzerland has a cultural influence on the areas of Switzerland that are close to them. This influence is mostly visible in language of Switzerland. There are four main languages spoken in this country: German, French, Italian, and Romanish. 60% of the Swiss population speak German. 20% of them speak French, 6% speak Italian and around 1% of them speak Romanish.13 In Switzerland, each region, town or village speaks their own dialect and nobody is willing to give it up and find a common written Swiss Language. People often identify themselves and their regions with their dialect. In the early 15th century the need for a uniformly written German came into reformation. Most Germans accepted the written form as their spoken language, but the others did not. So different dialects are used in private and business conversations, even in schools and universities.
13 Eda.admin.ch (2008) Population. [online] Available at: http://www.eda.admin.ch/eda/en/home/doc/infoch/chpopu.html [Accessed: 6 Jan 2013].
Economic Analysis
Switzerland has the most stable economy in the world. As a country where monetary security and political stability, it has been a heaven for investors, by creating an economy that is highly dependent on foreign investment. Since Switzerland is a small country and has high labor specialization, then the keys of this country to economic life hood are trade and industry. There are low unemployment rates, and a high per capita income. One of the significant roles is played by the service sector.
Population
Population in Switzerland was recorded at 7.9 million in 2011. It was a 48% increase of population from 5.4 million. The population of Switzerland represents 0.11 percent of the world’s total population. Population growth was steepest in its growth in the period after World War II and it slowed down during the 1970s to 1980s and has since again picked up to 1% during the 2000’s. The population density 11
(people per sq. km) as of 2010 was 195.65. More than 75% of the Swiss population live in the central plain between the Alps and the Jura Mountains and from Geneva to the Rhine River and Lake Constance in the north-east. About 20% of the Swiss population is made up from residents foreigners.
15.2% of the population is made up of people aged under 15. 67.8% of them is made up of people aged 15 to 64, and 17% of it is made up of people aged 65 years and over. 14
14 Tradingeconomics.com (2011) Switzerland Population. [online] Available at: http://www.tradingeconomics.com/switzerland/population [Accessed: 13 Jan 2013].
15 ymcamun.org (2013) Legal Country Reference Information. [online] Available at: http://ymcamun.org/wp-content/uploads/2013/01/Legal-Country-Reference-Information.pdf [Accessed: 6 Jan 2013].
Economic Statistics And Activity
Switzerland had a Gross Domestic Product (GDP) of $635.65 Billion US dollars in 2011. The population of Switzerland enjoys a comfortable financial life. The capita income in this country is $59,880. It ranks sixth in the World Bank’s rankings. Its capitalist economy has many giant banks and multinational corporations.
The average Swiss family income is 22,387 USD a year. 15
Distribution of Income or Consumption by Percentage Share: Switzerland
Survey year: 1992
Lowest 10% 2.6, lowest 20% 6.9, second 20% 12.7, third 20% 17.3, fourth 20% 22.9, highest 20% 40.3, highest 10% 25.2
Note: This information refers to income shares by percentiles of the population and is ranked by per capita income.
Resources 12
With an area of almost 16.000 sq miles, Switzerland is one of poor countries of natural resources. There is no oil and there are not many gas reserves. There are a few ,omera; resources including salt and marble. Due to the absent of natural resources, Switzerland focuses on the deposits it has. Swiss exploit gravel, sand and clay together with the minerals they have. They produce ammonia, raw steel, gypsum, aluminum, etc.16
16 Muse.jhu.edu (2004) Project MUSE - Whiteout. [online] Available at: http://muse.jhu.edu/journals/sais_review/summary/v024/24.1baron.html [Accessed: 3 Feb 2013].
17 Pressreference.com (2010) Switzerland Press, Media, TV, Radio, Newspapers - television, circulation, stations, number, print, freedom, online, broadcasting. [online] Available at: http://www.pressreference.com/Sw-Ur/Switzerland.html [Accessed: 12 Feb 2013].
Transportation
The Swiss transport system is known to be one of the finest in the world. The dense network of railroads, bus and tramway lines together with systematic timetables allow one to reach any point in the country in no time. Annually many funds are invested into transportation infrastructure and road building. Highways and motorways across the country connect France, Germany, Italy, Liechtenstein and Austria.
The International airports of Zurich, Geneva, Basel and Lugano receive flights from all over the world and have their own railway and bus stations directly connected to all major cities in Switzerland and neighboring countries.
Communication Systems In Switzerland
Communication in Switzerland is mainly made possible through telephone lines, cellular, radio broadcast stations, Television stations, and Internet. There are around 5 million users of telephone lines, 6 million users of mobile cellular. There are also around 115 TV stations and around 3 million internet users.17
Working Conditions
Switzerland is known for good working conditions and pays great attention to its monitoring and 13
improvement. The employment contract is generally regulated by the Swiss Code of Obligations and can be concluded for a definite or an indefinite period, on a full or part-time basis. The salary may be calculated by periods of time or according to the work carried out From the legal aspect, there is no minimum wage unless stipulated in a collective employment contract. The regular termination terms can vary between one and three months. It depends on the duration of the employment period. In case of termination of employment both contractual parties are protected by law from abusive employment termination. Maximum working hours vary between 45 and 50 hours per week and depend on the industry. For example, a 45 hour limit is applied to industrial workers and office staff. The legal standard for employment holidays is 4 weeks. However, holidays depend on the employer, the employment contract and age of the employee.18
18 Invest in Switzerland (2012) Labor market and labor laws.. [report] p.73.
Major Industries
The major industries of Switzerland include tourism, the provision of banking, insurance and financial services, watch-making, precision instrument manufacturing and chemical manufacturing.
Foreign Investments
Switzerland offers a good economy, stable politics, open trade policies, etc. In 2009, Switzerland got the first place on the list of the World Economic Forum’s Global Competitive Index. This has led to a higher interest of foreign companies to set up their global or regional headquarters in this country. According to a study conducted by the Swiss-American Chamber of Commerce, over the past decade. about 200 companies have set up their corporate headquarters in Switzerland. The Swiss government is constantly promoting the benefits companies can have for investing in Switzerland. 14
Switzerland is highly dependent on export markets to maintain its large export sector and supply materials for the domestic manufacturers. Switzerland has very liberal trade and investment policies and it protects foreign investments in it by its domestic policies.
The main exports of Switzerland are machinery, metals, watches, agricultural products, chemicals, vehicles, etc. In 1998, 80% of the main partners of Switzerland were from the EU (Germany, France, Italy, Nederlands, and Britain), 6% from the US, and 3% from Japan. By 2000, exports to the U.S. increased by 15.9%. Exports also increased in Turkey, South Korea and China.19 19 Global Competitiveness | World Economic Forum (2012) Global Competitiveness. [online] Available at: http://www.weforum.org/issues/global-competitiveness [Accessed: 1 Feb 2013]. Trade (expressed in billions of US$): Switzerland | Year | Exports | Imports | 1975 | 12.958 | 13.305 | 1980 | 29.632 | 36.341 | 1985 | 27.433 | 30.696 | 1990 | 63.784 | 69.681 | 1995 | 78.040 | 76.985 | 1998 | 75.431 | 73.877 | SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999. |
Taco Bell
Table of Contents
Executive Summary .................................................................................................................................... 2
Company Description ................................................................................................................................. 2
Cultural Analysis Of Switzerland ................................................................................................................. 3
Brief History Of Switzerland .................................................................................................................... 3
Geographical Settings ............................................................................................................................... …show more content…
3
Social Institutions.................................................................................................................................... 4
Religion And Aesthetics ........................................................................................................................... 6
Living Conditions ................................................................................................................................... 7
Language ............................................................................................................................................... 10
Economic Analysis ................................................................................................................................... 10
Population ............................................................................................................................................. 10
Economic Statistics And Activity ........................................................................................................... 11
Developments In Science And Technology ............................................................................................ 17
Channels Of Distribution ........................................................................................................................ 18
Media .................................................................................................................................................... 19
Market Audit And Competitive Market Analysis ....................................................................................... 20
The Product ........................................................................................................................................... 20
The Market ............................................................................................................................................ 20
Preliminary Marketing Plan ........................................................................................................................ 21
Marketing Plan ...................................................................................................................................... 21
Pro Forma Financial Statements And Budgets ....................................................................................... 28
Resource Requirements .......................................................................................................................... 29
Conclusion ................................................................................................................................................ 30
References ................................................................................................................................................. 31 2
Executive Summary
This five-year project has been created with the aim to make an investment in Switzerland by bringing a Taco Bell franchise to that country. This franchisee will operate as a single-brand, a traditional Taco Bell Unit offering inexpensively priced, which offers a high quality Mexican-style food for take-out and on-premises eating. Although this kind of food is a traditional Mexican food, it is very popular and preferred by Americans. This kind of food with its delicious taste can also be liked by Europeans, in particular by Swiss people who are going to have the opportunity to have this fast food restaurant in their own country. However, there are some challenges that should be considered for brining Taco Bell in Switzerland. The legal requirements from Switzerland, the standards of the quality of food, the skilled staff, and some other requirements must be met for having a Taco Bell open in this country.
Company Description
Taco Bell Corporation is a California-based fast service restaurant chain that specializes in Mexican-style fast food. Taco Bell, with 2004 combined company and franchisee sales reaching $5.7 billion dollars, holds the largest share of the Mexican-style restaurant market in the United States. More than 35 million consumers visit a Taco Bell each week and over 80 percent of its 6,500 locations are franchised. The company, with restaurants in Canada, Guam, Aruba, Dominican Republic, Chile, Costa Rica, Guatemala, Puerto Rico, Ecuador, Hawaii, Asia, and Europe, operates as a subsidiary of YUM! Brands Inc., the largest restaurant company in the world.1
1 Tacobell.com.ph (2008) Taco Bell Philippines. [online] Available at: http://www.tacobell.com.ph/company.htm [Accessed: 8 Feb 2013]. 3
Cultural Analysis Of Switzerland
Brief History Of Switzerland
Switzerland industrialized rapidly during the 19th century, becoming the second most industrialized country in Europe after Great Britain in 1850. During World War I, tensions developed between French, German, and Italian speaking groups in Switzerland. During World War II, there was a high pressure from the fascist powers, which after the fall of France, surrounded the whole country.
The Cold War improved the neutral position of Switzerland. It integrated itself into the American-led Western postwar order. Switzerland did not join the European Union and it still remains out of the European Union.
Geographical Settings
Switzerland is a small country which is located in the heart of western Europe.
It is the land of the Alps with some of the highest mountains in Europe and it has a plateau and many lakes. 60% of Switzerland are in the alpine region. 30% are hills and relatively flat valleys. 10% form a chain of old mountains called Jura. Switzerland does not have access to the sea, but it has many water resources. It is rich of large lakes such as Lake Geneva, Lake Constance, Lake Lucerne, Lake Zurich, Lake Lugano, etc. Some of the largest rivers of Switzerland are Rhone, Rhine, Limmat and Aar. Switzerland enjoys an almost Mediterian …show more content…
climate.2
2 History of Switzerland
Jud. (2000) History of Switzerland. [online] Available at: http://history-switzerland.geschichte-schweiz.ch/swiss-history-summary.html [Accessed: 2 Feb 2013]. 4
Social Institutions
Family
People in Switzerland marry relatively late. They focus more on training and their careers. A Swiss family usually consists of 3-4 family members. Most of the couples have 1 to 2 children.
Education
Switzerland has a decentralized education system. Decisions about running primary and secondary schools are taken at the cantonal level. Cantons also provide the bulk of financing. A head of education is elected for each canton. The heads of cantons make up the Swiss Conference of Cantonal Ministers of Education. About 25% of Swiss adult population hold a diploma of higher learning. According to the CIA World Factbook data for 2003, 99% of the Swiss population aged 15 and over could read and write, with the rate being identical for both sexes.3
3 Aecsworld.com (2000) AECS WORLD | Abroad Education Consultancy Services World Study Abroad Services Study Abroad Consultants For Germany, USA, Finland, Norway, Denmark, Sweden, Netherlands, France, Australia, New Zealand, Canada, Singapore, Switzerland, UK, Ireland, Cyprus etc. [online] Available at: http://www.aecsworld.com/view.php?id=49 [Accessed: 7 Jan 2013].
Political System
The governance system of Switzerland is stable. It is consensus-based and it is designed to direct democracy. Switzerland is a Federal State with 26 cantons. As a decentralized confederation of states, political and administrative responsibilities are divided among the federal, cantonal and municipal levels of Swiss government. . Each canton has its own constitution, code of civil procedure and parliament chamber. The Constitution provides for the separation of the three branches of government: the Federal Assembly, the Federal Council and the Federal Tribunal. Being located at the heart of the European 5
Economic Area (EEA) there is a well-established Swiss-EU relationship mostly focused on trade, labor and transport issues.4
4 Fleiner, T. (2012) Swiss Confederation. [report] IACFS, p.1.
5 Focus, E. (2010) Switzerland - Legal System | ExpatFocus.com. [online] Available at: http://www.expatfocus.com/expatriate-switzerland-legal-system [Accessed: 3 Feb 2013].
6 Focus, E. (2010) Switzerland - Culture, Society and Religion | ExpatFocus.com. [online] Available at: http://www.expatfocus.com/expatriate-switzerland-culture-society-religion [Accessed: 15 Jan 2013].
Legal System
As a brief overview, legislation in Switzerland is approved by Parliament and adjudicated by the Swiss Federal Supreme Court or, in insurance-related cases only, the Federal Insurance Court.
The Federal Supreme Court has a comparable role to the U.S. Supreme Court, however the court in Lucerne is the only federal court. In adjudicating cases, the Federal Supreme Court cannot normally overrule federal statutes unless these are deemed to be in direct violation of human rights, but can call legislation set by cantons into question. However, there are periodic reviews of legislation, with many new laws having come into force on 1 January 2011 concerning a variety of issues ranging from privacy to war crimes, and from minimum wages for cleaners to the prevention of marriages of illegal immigrants in
Switzerland.5
Social Organization
Switzerland is a place of tradition and respect for values of family, religion and homeland. This is more evident in rural areas. Social rules govern behavior of people, promoting a society that is respectful for others. However, there is low tolerance for behavior that is contrary to the good of the community.
Switzerland is known as an efficient and well-ordered society. Glacial lakes and snowy landscapes help to promote the image of a clean and proud country which ensures high standards. Switzerland has high life expectancy . Zurich and Geneva are ranked respectively numbers 2 and 3 in the top cities worldwide for quality of living.6 6
Business Customs And Practices
Appointments in Switzerland should be arranged in advance, and the arrival should be prepared with detailed information relating the meeting. It is very important to build positive business relationships. Arriving at appointment five or ten minutes late is considered disrespectful to Swiss people. When you cannot avoid lateness, contact the meeting coordinator as early as possible. Efficiency is highly valued among Swiss. Swiss businesses operate with a clear leadership structure. The leaders tend to be modest and discreet in their exercise of authority. Most of the Swiss are generally courteous but reserved. Loudness, excessive enthusiasm, and over familiarity are all considered improper at the start of a business relationship. Giving gifts is not a part of the Swiss business culture, however, if invited to diner in a colleague’s home, it is appropriate to bring flowers or high quality Swiss chocolate. When entering or leaving a meeting, it is traditional to shake hands and make eye contact with each person in attendance, beginning with the most senior in age or rank. It is also appropriate to distribute business cards during introductions. Professional relationships are quite formal, even amongst colleagues who have worked closely together for many years. Refer to Swiss colleagues using their formal title if appropriate, or Mr., Mrs., etc. and surname. Nonverbal communication and proper posture is important in professional situations. It is appropriate to cross legs knee-over-knee, however, crossing legs ankle-over-knee or extending legs out while seated is considered rude.7
7 Communicaid (2009) Doing Business in Switzerland. [report] p.1.
Religion And Aesthetics
Religion
The major religions in Switzerland are Catholicism and Protestantism. 46% of the Swiss people are Roman Catholic, while Protestant followers are a close second at 40%. Muslims, Jews and Christians constitute 6%, while people with no professed religious following figure at 10%. There is total freedom of 7
worship in this small country. The proportion of people belonging to other churches has risen since 1980. The Muslim community, representing over 2 percent of the population in 1990, is the largest religious minority in this country. The Jewish community has always been very small and often discriminated; in 1866, Swiss Jews received the constitutional rights held by their Christian fellow citizens. Even though the Swiss Constitution calls for separation of church from the state, churches are still dependent on the state. In many cantons, pastors and priests receive salaries as civil servants, and the state collects ecclesiastical church taxes. 8
8 UNHCR.org (2011) UNHCR | Refworld | World Directory of Minorities and Indigenous Peoples - Switzerland : Overview. [online] Available at: http://www.unhcr.org/refworld/country,,MRGI,,CHE,4562d8b62,4954ce045,0.html [Accessed: 23 Jan 2013].
Aesthetics
Switzerland has a very intense and diverse cultural life. The art and the esthetics in Switzerland also are part of the Swiss. Modernity and rationalization inspire the Swiss artists to create art. People are open to different cultures, arts, and fashion. However, they are mostly focused on the European culture, including arts and aesthetics.
Living Conditions
Diet And Nutrition
Switzerland does not have a great tradition of foods. They adopt the best recipes from German and French cuisine. Also similar to Germany, the Swiss tend to have a diet that is spicier and even sweeter than the diet of the British. They eat a lot of breads, cakes and other sweets, potatoes, and meats. Sausage is also popular in Switzerland. The people of Switzerland are known for being especially fond of cheese and chocolate. Fermented foods, such as sauerkraut and sour cream may help the body handle this higher- 8
fat, low-fiber diet. Fresh fruits are less available and the colder-climate vegetables, such as cabbage, cauliflower, and potatoes are used the most. Beer consumption is also high in Switzerland.9
9 Ianr.unl.edu (2011) People and Their Diet. [online] Available at: http://www.ianr.unl.edu/kendrick/411/people-s00.html [Accessed: 4 Feb 2013].
10 All-history.org (2009) History of the World. [online] Available at: http://all-history.org/01un166.html [Accessed: 9 Jan 2013].
11 Olympic.org (2012) Switzerland | Swiss Olympic Association | National Olympic Committee. [online] Available at: http://www.olympic.org/switzerland [Accessed: 3 Jan 2013].
Housing
Since Switzerland is rich of different cultures and has a variety of geographic settlement patterns, there are different types of traditional housing in different regions of this country. There are smooth stone houses in Engadin, small stone buildings in Ticino, combinations of houses and barns in Mittleland, shingled facades in Appenzen, and the wooden villages of the valleys of Valais canton.
There is a relatively modern housing stock in Switzerland, two-thirds of which have been built since 1947.Since there is a high population density, about one-fourth of homes have more than five rooms.10
Clothing
All the various cultures have an influence on Swiss fashion, as does the nation 's climate. Switzerland 's climate is temperate, although temperatures vary according to the altitude. Temperatures in lower elevations range from cool to warm, with humid summers having occasional showers.
Sports And Recreation
Sports are an important part of Swiss life. The Swiss Olympic Association, the national clearinghouse for sports activities. There are 3.5 million members and more than 25,000 organizations that have been part of it since the beginning of the 21st century. Swiss people like Alpine skiing, Nordic Skiing, touring museums, drinking, fine dining, hiking, cycling, and fishing.11 9
Social Security
The social security system in Switzerland is based on state and occupational benefits. Contributions are made by both employer and employee. However, the contributions to the occupational pension fund only start when the employees turn 25 and they earn more that SFR 20,880 in wages per year from one employer. If the employer is changed, then the employee must arrange for his/her accumulated capital to be transferred to the new employer’s pension fund.
Residents of USA also benefit from social security agreements with Switzerland. They are entitled to a Swiss pension based on contribution they made when working in Switzerland, even if they are no longer in Switzerland when they retire.
Contribution reimbursements to the state social security system, are only possible for people from countries with no social security agreement. Expats may choose to keep or transfer their funds or request a pay-out, so called cash termination benefit. 12
12 Internations.org (2002) Social Security in Geneva | InterNations.org. [online] Available at: http://www.internations.org/geneva-expats/guide/working-in-geneva-15511/social-security-in-geneva-2 [Accessed: 2 Feb 2013].
Healthcare
There are high standards of the general healthcare in Switzerland. This is reflected in an above average life expectancy of Swiss population. Private and public hospitals meet and even exceed international healthcare standards. But, it is very expensive as well. It is on the second place in terms of cost (after U.S.) Private hospitals usually tend to specialize in certain treatments.
Everyone living in Switzerland is entitled to healthcare. All Swiss residents are required to register for basic health insurance. A large portion of health insurance cost is covered by the population and the insurance companies, rather than the state itself. 10
Language
Every country that surrounds Switzerland has a cultural influence on the areas of Switzerland that are close to them. This influence is mostly visible in language of Switzerland. There are four main languages spoken in this country: German, French, Italian, and Romanish. 60% of the Swiss population speak German. 20% of them speak French, 6% speak Italian and around 1% of them speak Romanish.13 In Switzerland, each region, town or village speaks their own dialect and nobody is willing to give it up and find a common written Swiss Language. People often identify themselves and their regions with their dialect. In the early 15th century the need for a uniformly written German came into reformation. Most Germans accepted the written form as their spoken language, but the others did not. So different dialects are used in private and business conversations, even in schools and universities.
13 Eda.admin.ch (2008) Population. [online] Available at: http://www.eda.admin.ch/eda/en/home/doc/infoch/chpopu.html [Accessed: 6 Jan 2013].
Economic Analysis
Switzerland has the most stable economy in the world. As a country where monetary security and political stability, it has been a heaven for investors, by creating an economy that is highly dependent on foreign investment. Since Switzerland is a small country and has high labor specialization, then the keys of this country to economic life hood are trade and industry. There are low unemployment rates, and a high per capita income. One of the significant roles is played by the service sector.
Population
Population in Switzerland was recorded at 7.9 million in 2011. It was a 48% increase of population from 5.4 million. The population of Switzerland represents 0.11 percent of the world’s total population. Population growth was steepest in its growth in the period after World War II and it slowed down during the 1970s to 1980s and has since again picked up to 1% during the 2000’s. The population density 11
(people per sq. km) as of 2010 was 195.65. More than 75% of the Swiss population live in the central plain between the Alps and the Jura Mountains and from Geneva to the Rhine River and Lake Constance in the north-east. About 20% of the Swiss population is made up from residents foreigners.
15.2% of the population is made up of people aged under 15. 67.8% of them is made up of people aged 15 to 64, and 17% of it is made up of people aged 65 years and over. 14
14 Tradingeconomics.com (2011) Switzerland Population. [online] Available at: http://www.tradingeconomics.com/switzerland/population [Accessed: 13 Jan 2013].
15 ymcamun.org (2013) Legal Country Reference Information. [online] Available at: http://ymcamun.org/wp-content/uploads/2013/01/Legal-Country-Reference-Information.pdf [Accessed: 6 Jan 2013].
Economic Statistics And Activity
Switzerland had a Gross Domestic Product (GDP) of $635.65 Billion US dollars in 2011. The population of Switzerland enjoys a comfortable financial life. The capita income in this country is $59,880. It ranks sixth in the World Bank’s rankings. Its capitalist economy has many giant banks and multinational corporations.
The average Swiss family income is 22,387 USD a year. 15
Distribution of Income or Consumption by Percentage Share: Switzerland
Survey year: 1992
Lowest 10% 2.6, lowest 20% 6.9, second 20% 12.7, third 20% 17.3, fourth 20% 22.9, highest 20% 40.3, highest 10% 25.2
Note: This information refers to income shares by percentiles of the population and is ranked by per capita income.
Resources 12
With an area of almost 16.000 sq miles, Switzerland is one of poor countries of natural resources. There is no oil and there are not many gas reserves. There are a few ,omera; resources including salt and marble. Due to the absent of natural resources, Switzerland focuses on the deposits it has. Swiss exploit gravel, sand and clay together with the minerals they have. They produce ammonia, raw steel, gypsum, aluminum, etc.16
16 Muse.jhu.edu (2004) Project MUSE - Whiteout. [online] Available at: http://muse.jhu.edu/journals/sais_review/summary/v024/24.1baron.html [Accessed: 3 Feb 2013].
17 Pressreference.com (2010) Switzerland Press, Media, TV, Radio, Newspapers - television, circulation, stations, number, print, freedom, online, broadcasting. [online] Available at: http://www.pressreference.com/Sw-Ur/Switzerland.html [Accessed: 12 Feb 2013].
Transportation
The Swiss transport system is known to be one of the finest in the world. The dense network of railroads, bus and tramway lines together with systematic timetables allow one to reach any point in the country in no time. Annually many funds are invested into transportation infrastructure and road building. Highways and motorways across the country connect France, Germany, Italy, Liechtenstein and Austria.
The International airports of Zurich, Geneva, Basel and Lugano receive flights from all over the world and have their own railway and bus stations directly connected to all major cities in Switzerland and neighboring countries.
Communication Systems In Switzerland
Communication in Switzerland is mainly made possible through telephone lines, cellular, radio broadcast stations, Television stations, and Internet. There are around 5 million users of telephone lines, 6 million users of mobile cellular. There are also around 115 TV stations and around 3 million internet users.17
Working Conditions
Switzerland is known for good working conditions and pays great attention to its monitoring and 13
improvement. The employment contract is generally regulated by the Swiss Code of Obligations and can be concluded for a definite or an indefinite period, on a full or part-time basis. The salary may be calculated by periods of time or according to the work carried out From the legal aspect, there is no minimum wage unless stipulated in a collective employment contract. The regular termination terms can vary between one and three months. It depends on the duration of the employment period. In case of termination of employment both contractual parties are protected by law from abusive employment termination. Maximum working hours vary between 45 and 50 hours per week and depend on the industry. For example, a 45 hour limit is applied to industrial workers and office staff. The legal standard for employment holidays is 4 weeks. However, holidays depend on the employer, the employment contract and age of the employee.18
18 Invest in Switzerland (2012) Labor market and labor laws.. [report] p.73.
Major Industries
The major industries of Switzerland include tourism, the provision of banking, insurance and financial services, watch-making, precision instrument manufacturing and chemical manufacturing.
Foreign Investments
Switzerland offers a good economy, stable politics, open trade policies, etc. In 2009, Switzerland got the first place on the list of the World Economic Forum’s Global Competitive Index. This has led to a higher interest of foreign companies to set up their global or regional headquarters in this country. According to a study conducted by the Swiss-American Chamber of Commerce, over the past decade. about 200 companies have set up their corporate headquarters in Switzerland. The Swiss government is constantly promoting the benefits companies can have for investing in Switzerland. 14
Switzerland is highly dependent on export markets to maintain its large export sector and supply materials for the domestic manufacturers. Switzerland has very liberal trade and investment policies and it protects foreign investments in it by its domestic policies.
The main exports of Switzerland are machinery, metals, watches, agricultural products, chemicals, vehicles, etc. In 1998, 80% of the main partners of Switzerland were from the EU (Germany, France, Italy, Nederlands, and Britain), 6% from the US, and 3% from Japan. By 2000, exports to the U.S. increased by 15.9%. Exports also increased in Turkey, South Korea and China.19 19 Global Competitiveness | World Economic Forum (2012) Global Competitiveness. [online] Available at: http://www.weforum.org/issues/global-competitiveness [Accessed: 1 Feb 2013]. Trade (expressed in billions of US$): Switzerland | Year | Exports | Imports | 1975 | 12.958 | 13.305 | 1980 | 29.632 | 36.341 | 1985 | 27.433 | 30.696 | 1990 | 63.784 | 69.681 | 1995 | 78.040 | 76.985 | 1998 | 75.431 | 73.877 | SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999. |